CHICAGO, IL--(Marketwired - January 26, 2016) - rVue Holdings, Inc., (OTC PINK: RVUE), a premier advertising technology platform for digital location video, announced that the Company has raised nearly $1.5 million to accelerate sales and marketing programs and fund technology advancements.
In the last several months, rVue has raised $220,000 in private placements of common stock with existing investors and their affiliates. In aggregate, the Company's private placements have raised approximately $1.7 million during 2015 and early 2016.
In the present transaction, rVue signed a Subscription Agreement with Acorn Composite Corp. ("Acorn") to raise up to $1,476,100 in gross proceeds. Upon execution of the agreement, the Company sold common stock to Acorn for total consideration of $270,000. The Company also has the right to sell additional shares of common stock to Acorn on a monthly basis through September 2016, in the Company's discretion, as needed to meet the Company's capital requirements. Acorn's total commitment for these purchases is $1,080,000, inclusive of the $270,000 initial investment. rVue plans to use any proceeds from these purchases to fund business operations and for other general corporate purposes.
The Subscription Agreement also gives the Company the right to sell additional shares of common stock to Acorn valued at up to $396,100 as "take-out" purchases in the event the Company's current variable-priced convertible note financings are not repaid via conversion to common stock. rVue plans to use any proceeds from these purchases to repay these financings.
"This most recent capital raise and transaction with Acorn represents a vote of confidence in our business strategy, our plans to expand sales efforts, and equally important, the growing interest in the digital location video category," commented Mark Pacchini, President and CEO of rVue Holdings, Inc.
Acorn is an affiliate of Robert Roche, a director of the Company. The terms of the transaction were negotiated at arms-length and were reviewed and approved by a Special Committee of the Board of Directors which did not include Mr. Roche.
More information about the transaction, as well as a copy of the Subscription Agreement, can be found in the Company's Current Report on Form 8-K that was filed with the Securities and Exchange Commission ("SEC") on January 26, 2016.
The shares of common stock sold and to be sold to Acorn in the private placement have not been registered under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, and cannot be sold or otherwise transferred without registration under the Securities Act or an exemption therefrom. The Company is not obligated to register the shares.